Saks data suggests inflation is not dampening luxury spend.
Higher-income or “luxury” shoppers are still willing to spend money and are widening the product categories they shop.
At least that’s according to the latest Saks Luxury Pulse, in which 76% of surveyed luxury shoppers with an income of $200,000 or more said they plan to purchase the same or even more luxury items in the next three months than they did in the past three months. As to where they would spend an extra $500, vacation and leisure travel (38%) came out on top, followed by shoes, accessories and handbags (29%).
Among all respondents, significantly more Generation X (21%) and millennial and Generation Z (22%) consumers are planning to purchase more luxury items in the next three months compared to respondents of the baby boomer and silent generations (16%).
The survey also revealed an increasing interest among all respondents in luxury wellness and home products. Specific findings include:
Roughly two in five respondents (41%) are prioritizing wellness, especially rest & relaxation, nutrition and general self-care, more now than they were prior to the COVID-19 pandemic.
Of those respondents who are prioritizing fitness activities, 62% are interested in shopping for workout wear from luxury retailers.
Over the last three months, 54% of respondents have been updating, renovating or redecorating their home or decorating their new home.
Respondents are likely to shop for bed & bath products (51%), home decor (50%) and candles & diffusers (42%) in the next three months.
Other interesting results include:
85% of respondents are planning to shop the same amount or more online in the next three months compared to the last three months.
When splurging, 80% of respondents say it is likely for themselves or a gift for themselves, across generations.
“We continue to pay close attention to the evolving macro environment and the insights from the Saks Luxury Pulse reinforce our perspective on the luxury consumer,” said Marc Metrick, CEO, Saks. “The luxury customer remains highly engaged with fashion, and we are confident that our customers will continue to look to Saks when they want to elevate and refresh their everyday style.”
June 2022 Mastercard SpendingPulse data, which measures in-store and online sales across all forms of payment, indicates that with summer in full swing, consumers continue to spend on leisure experiences. Airline sales rose 18.2% year-over-year in June and were up 7.3% compared to June 2019. Lodging sales rose 33.7% year-over-year and 30.4% compared to 2019. In addition, luxury sales excluding jewelry were up 4%.
The Saks Luxury Pulse is a periodic online survey of luxury consumers’ attitudes towards shopping, spending and fashion trends. It is based on responses from 2,137 U.S.-based respondents over age 18 and was fielded between May 24-27, 2022.
Through the Saks website and app, the Saks luxury e-commerce platform provides access to professional stylists, editorial content and interactive events, combined with in-person services through an exclusive partnership with the Saks Fifth Avenue stores.